Integrating sales and operation describes the process engineered to obtain information about demand in the commercial context and matching it up against supply and financial objectivity. This then informs the cautious decision making about the future production. Integration occurs when different departments such as sales, marketing, supply chain and finance are integrated in pursuit of a singled out goal. Organizations have ways of achieving this with the simplest way being influencing the organizational culture. Numerous benefits also come with this exercise.
Sales and operations planning enhance alignment of several departments to form coherent chain of operation. It harmonizes the functions of the sales, marketing, manufacturing and finance in terms of the goals to be achieved and how to achieve them. In this manner, whenever the marketing department acquires information that a particular product is in high demand, it provides this information to manufacturing which would be ready for it, and in turn have reflected it in the plan. In the same manner, the finance department would also have had anticipation spending in this increased production. When all these operations are ironed out in a smooth manner, it represents agreement between the department heads on the plan.
Another significant benefit of sales and operations integration is that it enhances maximum decision making resources because several departments are involved. There is a lot of engagement of the human resource of the company to make decision. This is done through meetings where issues can be...
References
Andrews J., (2014). Importance of Supply Chain Collaboration. Retrieved 26 August, 2017 from http://www.supplytechnologies.com/blog/the-importance-of-supply-chain-collaboration
Robertson T., (2017). What Are “Verticals In Business? Retrieved 26 August, 2017 from http://smallbusiness.chron.com/verticals-business-26157.html
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